ABSTRACT
Welfare of an economy involves various ultimate economic activities and the best polices to promote human well-being in a society. Cost Benefit Analysis is one of the cornerstones of modern policy analysis. It assesses the financial, economic, social and environmental impacts taking into consideration both the long term and the broad views. Numerous thoughts were generated on prescribing various principles for compensating the project-affected people along with who should be the efficient agents for an ethical value judgment of welfare. Conventionally, the buyers and sellers determine the value of land in the market. The Western thought on ethical value judgment for distributing the social welfare has undergone various development processes such as optimization of scarce resources; Pareto Optimality as also determination of Social Welfare Function based on unanimity, completeness, democracy and transitivity by involving various agents in the process of development.
